• NateNate60@lemmy.world
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    1 month ago

    Keep in mind that this is not necessarily a good thing. China’s economy is still mostly driven by Government spending and exports rather than consumer demands. The Chinese government would usually prefer the yuan to be weaker as this makes Chinese exports cheaper when denominated in foreign currencies and makes imports more expensive, discouraging domestic consumers from buying foreign goods.

    The article does mention this as well, but the yuan’s exchange rate isn’t a great indicator of the Chinese economy as a whole because the central bank spends a great deal of time manipulating it.